Speaking out against listing syndicators
As a Miami real estate professional of more than 20 years, I feel it is my duty to address the hornet’s nest that has arisen as a result of listing syndication websites like Zillow, Trulia and Realtor.com. While many homebuyers and sellers think these sites are helpful, in many cases, the opposite is true.
When it comes to helping market the listings of realtors, tons of data and years of research have proven that sites like these actually do more harm than good to the listing agents. Here’s an overview of why realtors all over the country hate Zillow, Trulia and Realtor.com.
Bogus information
When you click on Zillow or any of the other listing syndication websites, you’ll see that there are thousands of homes available for rent or purchase. But the truth is that these sites routinely inflate the inventory, in some markets by 300% or more. Why would they do this? It all comes down to this: money, money, money. If they have more listings than their competitors, realtors will prefer to advertise on their site. Makes sense, right?
But to the unsuspecting homebuyer or seller, who is actually just searching through properties that are either sold, mispriced, under contract or no longer available, it is a detriment that results in a colossal waste of time. There’s also the fact that the high percentage of unavailable properties hurts the reputation of the realtors representing them.
Fear and greed
For a realtor like me, who has built her reputation on years of experience and integrity, Zillow, Trulia and Realtor.com make a mockery out of the whole institution. They have created a racket where they pressure realtors into entering into costly advertising contracts just to secure their own listing information—information that they already own and have the legal right to advertise.
On any and all of these sites, if a realtor chooses to pay the exorbitant fee to advertise his or her listing, they will post the listing and promise leads based upon click through rates. Then, they’ll promote non-listing agents alongside those same listings—tricking customers into thinking that these agents know and represent the realtor’s property.
They try and explain their behavior away by touting lead generation; trying to convince brokers that they’ll get enormous amounts of exposure. In reality, this process just confuses potential buyers, putting them on a never ending obstacle course in search of the real listing agent. That is if the property is still available and the price that they’ve listed is actually correct. Get the picture?
No legal responsibility for their accuracy
As a licensed real estate professional, I am bound to certain legal and ethical regulations that I and my colleagues take very seriously. But here’s a news flash: none of these sites feel any legal responsibility to post accurate information. Legislation must be created to fix this because until the whole system is overhauled, properties will continue to be advertised incorrectly, either over or under valued and there’s nothing you or I can do about it.
Theft of intellectual property
Most people know that to be successful, realtors have to invest their own money in marketing materials including photography, videos, virtual tours, flyers and more. These materials belong to the listing agent and as such should not be used by anyone else. But sites like Zillow, Trulia and Realtor.com not only take these materials and post them on their sites, they do so without safeguarding any of it against duplication or theft.
So what happens is that this information finds its way to sites like Craigslist that are known for unscrupulous real estate scams. This includes personal information like the address of the property, photos, descriptions of the property and more. And because there is no legal regulation that impacts these listing syndicators, they are not held responsible and feel no accountability.
I, as many other realtors and realty groups across the nation, am opposed to listing syndication sites that clearly are doing more harm than good. While I welcome change and the advent of technology and new ways to reach consumers, I only believe in methods that improve communication and provide accurate information.
I encourage all of my clients and anyone searching for a home or ready to sell their home to take careful consideration before engaging with Zillow, Trulia or Realtor.com. I welcome you to call me at 305-898-9729 or email me at saundralieber@gmail.com with questions or comments or if you need help with any real estate matters.
